Hughes v. Grand Casinos Inc
Hughes v. Grand Casinos Inc
Opinion
IN THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT
_____________________
No. 99-60123 _____________________
ALVIN K. HUGHES,
Plaintiff-Appellant,
v.
GRAND CASINOS INC.; JIM PETERSON;
Defendants-Appellees.
_________________________________________________________________
Appeal from the United States District Court for the Southern District of Mississippi (1:97-CV-500-GR) _________________________________________________________________
October 22, 1999
Before KING, Chief Judge, JOLLY and WIENER, Circuit Judges.
PER CURIAM:*
Plaintiff-Appellant Alvin K. Hughes appeals from the
district court’s grant of summary judgment in favor of
Defendants-Appellees Grand Casino, Inc. and Jim Peterson. We
AFFIRM.
I. BACKGROUND
In the Spring of 1997 Defendant-Appellee Grand Casinos, Inc.
(the “Casino”) restructured its Table Games Department.
Defendant-Appellee Jim Peterson (“Peterson”) was the vice-
* Pursuant to 5TH CIRCUIT RULE 47.5, the court has determined that this opinion should not be published and is not precedent except under the limited circumstances set forth in 5TH CIRCUIT RULE 47.5.4. president of the department during the restructuring. The
restructuring resulted in the demotion of forty-four employees
and the termination of twelve others. Plaintiff-Appellant Alvin
K. Hughes (“Hughes”) was one of two black male employees
terminated in the restructuring. Additionally, six white males,
two Hispanic males, and two white females were terminated.1
Hughes’s effective termination date was April 7, 1997. On
or about the same day, the Casino presented Hughes with a written
separation agreement (the “Agreement”). The Agreement released
the Casino from any and all claims arising out of Hughes’s
employment and his subsequent termination.2 In exchange for such
1 There appears to be some confusion regarding the number of terminated white male employees. Hughes’s brief and the affidavit of Defendant-Appellee Peterson both state that twelve employees, including Hughes, were terminated: six white males, two Hispanic males, two black males, and two white females. In Hughes’s Response to Defendants’ Motion for Summary Judgment, however, Hughes attached an internal memorandum from the Casino’s Human Resources Department discussing the restructuring. That memo indicated that thirteen employees were terminated: seven white males, two Hispanic males, two black males, and two white females. In any event, the precise number and race of the terminated employees does not affect our holding. 2 Specifically, the Agreement stated that Hughes
hereby releases and discharges Grand [the Casino] and its affiliates, and all of their directors, officers, and employees, agents, successors and assigns from any and all claims (except for claims under this Agreement) arising out of Hughes’s employment by Grand and/or the termination of such employment, including but not limited to claims arising under the United States Constitution, Title VII of the Civil Rights Act of 1964, as amended, the Americans with Disabilities Act of 1990, 47 U.S.C., [sic] 225, 661; the Civil Rights Act of 1991; the
2 release Hughes was to receive five weeks of salary as severance
pay. The Agreement gave Hughes fourteen days to consider the
offer and advised him to consult with an attorney prior to
acceptance. Hughes signed the Agreement sometime after he was
presented with it and received a check from the Casino.
On September 12, 1997, Hughes filed this action in federal
district court against the Casino and Peterson. Hughes’s
complaint alleged that his termination violated Title VII of the
Civil Rights Act of 1964. The Casino and Peterson subsequently
filed a motion for summary judgment, arguing that the Agreement
Hughes signed prevented him from maintaining this action. The
district court agreed, finding that Hughes had knowingly released
the Casino by signing the Agreement and, if not, he ratified it
by retaining his severance pay.
II. DISCUSSION
We review a grant of summary judgment de novo. See Celotex
Equal Pay Act: [sic] the Rehabilitation in Employment Act of 1973; Section 1981 of the Civil Rights Act of 1966; the Age Discrimination in Employment Act, and any other federal, state and local [sic] statute or regulation regarding employment or termination of employment, as well as all common law claims, arising out of any act or failure to act.
3 Corp. v. Catrett,
477 U.S. 317, 323-24(1986); Blakeney v. Lomas
Information Systems, Inc.,
65 F.3d 482, 484(5th Cir. 1995).
Summary judgment is proper when, viewing the evidence in the
light most favorable to the nonmovant, there is no genuine issue
as to any material fact and the moving party is entitled to
judgment as a matter of law. Amburgey v. Corhart Refractories
Corp., Inc.,
936 F.2d 805, 809(5th Cir. 1991); Fed. R. Civ. P.
56(c).
An employee may enter into a binding agreement to release an
employer from all future claims so long as the employee enters
into the release knowingly and voluntarily. See Williams v.
Phillips Petroleum Co.,
23 F.3d 930(5th Cir. 1994); EEOC v.
Cosmair, Inc.,
821 F.2d 1085(5th Cir. 1987). A release will be
found to be valid unless the totality of the circumstances
indicates that the employee did not enter into the release
knowingly and voluntarily. See O’Hare v. Global Natural
Resources,
898 F.2d 1015, 1017 (5th Cir. 1990). Hughes argues
that he did not release the Casino because he did not knowingly
and voluntarily enter into the Agreement. Hughes points to our
decision in O’Hare for the proposition that a court should
consider six factors when determining whether a release was
entered into knowingly and voluntarily. These factors are:
(1) the plaintiff’s education and business experience, (2) the amount of time the plaintiff had possession of or access to the agreement before signing it, (3) the role of plaintiff in deciding the terms of the agreement, (4) the clarity of the agreement, (5) whether the plaintiff was represented by or consulted with an attorney, and (6)
4 whether the consideration given in exchange for the waiver exceeds employee benefits to which the employee was already entitled by contract or law.
Id. (citations omitted). This list is not exclusive, and a court
need not address each of these six factors when determining
whether a release was entered into knowingly and voluntarily.
Rather, these are simply six “relevant” factors to consider under
the totality of the circumstances test. Id.
Hughes states that he was unsuccessful in attempting to
consult with an attorney, that he did not have a hand in
preparing the Agreement, and that he “felt pressured” to sign the
Agreement because he was told he would be terminated whether he
signed it or not. Hughes maintains that, under the totality of
the circumstances, these facts indicate that he could not have
entered into the Agreement knowingly and voluntarily. We
disagree.
Hughes’s failure to consult an attorney prior to signing the
Agreement does not compel the conclusion that he did not enter
into it knowingly and voluntarily. Consultation with an attorney
is a relevant, but not dispositive, factor in determining whether
a release was entered into knowingly. See O’Hare at 1017. It is
not the Casino’s fault that Hughes did not consult an attorney.
See
Williams at 937.
Moreover, Hughes’s arguments that he “felt pressured” into
signing the Agreement and did not have a hand in drafting the
Agreement are insufficient, in the light of other statements, to
5 show that he did not knowingly and voluntarily enter into the
Agreement. In his deposition testimony Hughes admitted that he
understood that signing the Agreement and accepting the severance
pay meant he was releasing the Casino from any claims. Hughes’s
statement that “[i]t was my understanding that irregardless of
whether or not I signed the agreement that I was still terminated
from the Grand” does not indicate that he was pressured into
signing the Agreement. While Hughes was to be terminated
regardless of whether he signed the Agreement, he could have
chosen not to sign it, foregone severance pay, and taken legal
action against the Casino. He did not. Instead he signed the
Agreement and accepted payment. The totality of the
circumstances indicate that Hughes knowingly and voluntarily
entered into the Agreement, thereby releasing the Casino from all
claims arising out of his employment and termination. Therefore,
there was no issue of material fact, and the district court
properly granted summary judgment in favor of the Casino and
Peterson.
Because we find that Hughes knowingly and voluntarily
released the Casino from any claims, we need not reach the
district court’s alternative grounds for granting summary
judgment.
III. CONCLUSION
For the foregoing reasons, we AFFIRM the district court’s
grant of summary judgment in favor of Defendants-Appellees Grand
6 Casino, Inc., and Jim Peterson.
7
Reference
- Status
- Unpublished